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Avicanna Obtains Option To Acquire US Cannabis Operator

Avicanna Obtains Option To Acquire US Cannabis Operator

Avicanna Inc. (TSX:AVCN) (OTC: AVCNF) announced Tuesday it has signed a license agreement with LC2019, Inc. under which the company will license specific proprietary formulations and brand elements to LC2019 for commercialization in the United States. LC2019 is a company formed to run cannabis-related operations in the U.S. following State-sanctioned cannabis programs.

The agreement will allow LC2019 to commercialize Avicanna’s Rho products in the U.S. market.

In regards to signing the agreement, LC2019 and its shareholders have also signed a definitive option agreement that provides Avicanna with the option to obtain 100% of the LC2019 shares, with such option to be executable when cannabis reaches legal status on the federal level in the U.S.

The company can choose to reject the triggering event and use the option at any time.

“We are thrilled to secure a strategy that will allow us to enter the United States as soon as federally permissible and, in the interim, provide an opportunity for our brands and science-driven product formulations to establish themselves in one of the largest and most exciting global markets for cannabis products,” said Setu Purohit, President of Avicanna.

In addition, Avicanna said Arash Moghani will step down from his position as the company’s CTO, to take upon the new position in the leadership team of LC2019.

Avicanna’s stock closed Tuesday’s session at $1.29 per share.

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